Investor Presentation August 2020 Forward Looking Statements and - PowerPoint PPT Presentation

Investor Presentation August 2020

Forward Looking Statements and Non‐GAAP Financial Measures Statements and information in this presentation that are not historical are forward‐looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are made pursuant to the “safe harbor” provisions of such Act. Forward‐looking statements include, but are not limited to, statements regarding our outlook, guidance, expectations, beliefs, hopes, intentions and strategies. These statements are subject to a number of risks, uncertainties, assumptions and other factors including those identified below. All forward‐looking statements are based on information available to us at the time the statements are made. We undertake no obligation to update any forward‐looking statements, whether as a result of new information, future events or otherwise, except as required by law. You should not place undue reliance on our forward‐looking statements. Actual events or results may differ materially from those expressed or implied in the forward‐looking statements. The risks, uncertainties, assumptions and other factors that could cause actual results to differ from the results predicted or implied by our forward‐looking statements include the factors disclosed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10‐K for the year ended December 31, 2019. The report is available on our investor relations website at lkqcorp.com and on the SEC website at sec.gov. This presentation contains non‐GAAP financial measures. Included with this presentation is a reconciliation of each non‐GAAP financial measure with the most directly comparable financial measure calculated in accordance with GAAP. 2

Mission Statement To be the leading global value‐added distributor of vehicle parts and accessories by offering our customers the most comprehensive, available and cost effective selection of part solutions while building strong partnerships with our employees and the communities in which we operate 3

Today’s Agenda LKQ Today LKQ Business Overview LKQ’s Strategy to Drive Shareholder Value Engaged Board with Strong Governance Practices Concluding Remarks 4

Overview of LKQ Company Overview Financial Performance  LKQ is a global distributor of vehicle products, including Revenue ($mm) replacement parts, components and systems used in repair and maintenance of vehicles and specialty products and accessories Organic 7.0% 4.8% 4.1% 0.3% 4.4% (10.3%) Growth (1)  Founded in 1998 through a combination of wholesale recycled $11,877 $12,506 $11,785 products businesses, which subsequently expanded through $9,737 $8,584 organic growth and ~280 acquisitions of aftermarket, recycled, $7,193 $5,627 refurbished and remanufactured product suppliers  Customers are primarily wholesale collision and mechanical DIFM shops (4) (4) 2015 2016 2017 2018 2019 TTM YTD 2020  Organized into three reportable segments: North America, Segment EBITDA (2) ($mm) Europe and Specialty  ~1,600 facilities, including roughly 550 in the U.S. and 1,050 in EBITDA over 25 other countries with ~44,000 employees (14,000 in 11.9% 11.7% 11.5% 10.5% 10.9% 10.6% 10.7% Margin North America) $1,328 $1,263 $1,251 $1,117 $1,005 $855 $613 Revenue by Segment (4) TTM (4) (4) 2015 2016 2017 2018 2019 TTM YTD 2020 Specialty 12% Free Cash Flow (3) ($mm) North America 42% $1,097 $836 $798 $465 Europe $388 $374 $347 46% (4) (4) 2015 2016 2017 2018 2019 TTM YTD 2020 1) Represents Parts and Services organic growth. 2) Segment EBITDA reflects continuing operations only. It is a non‐GAAP measure. 3) Free cash flow amount only includes free cash flow generated by continuing operations and is defined as cash flow from operations less capital expenditures. It is a non‐ GAAP measure. 5 4) YTD & TTM reflect period through 6/30/2020.

Over 16 years of growth Wholesale Keystone/ Remanufactured Self Serve Europe‐Sator Europe‐Rhiag Salvage Paint US 1998 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Aftermarket Refurbished Keystone/ Europe – Heavy Duty Europe‐ECP Services Collision Wheels Specialty Stahlgruber 2003 2007 2011 2020 (1) Total Revenue Total Revenue Total Revenue Total Revenue $328 million $1.11 billion $3.27 billion $11.8 billion 54% North 5% 13% America 12% 21% 3% 46% Recycled Products Aftermarket Self Service Parts European Specialty Other North America North America North America Operations LKQ has grown from a North American collision operation to a globally diversified aftermarket distributor 1) TTM reflects period through 6/30/2020. 6

Cost Structure Actions Opex quarterly run rate** Key cost reductions • Personnel costs down 24% – Headcount actions totaling ~17K FTEs include furlough, RIFs, decreased hours, elimination of overtime, temp workers and Opex 18% hiring freeze; leveraging European government programs Other Revenue 12% ▪ Brought back a portion of FTEs as revenue recovered through the quarter Facilities – Salary reduction of 10% – 20% effective during Q2 for employees compensated above certain thresholds and delayed 11% merit increase Delivery* ▪ Salary trim and merit reinstated in Q3 5% – Additional personnel savings reflected in COGS • Delivery costs down 9% 9% – Optimization in number of deliveries & routes across each segment and lower vehicle expenses and fuel spend, partially offset by mix‐driven increase in third party freight cost • Facilities costs down 5% Personnel – Lower utilities expense; branch closure benefits will be largely prospective owing to restructuring undertaken 24% • Other costs down 11% – Reduction in discretionary, professional services and non‐ mission critical spend representing a 17% decrease; partially offset by increased bad debt expense in Q2 (up 49% compared to Q1 2020) *Delivery Costs include freight, vehicle & fuel 7 ** Percentage changes reflect comparison against Q1 2020 figures

Liquidity as of June 30, 2020 Credit Rating • Rated Ba2 / BB by Moody’s and S&P, respectively • Fixed Interest Rate Bonds: €1,500 million ($1,685 million) • Variable Interest Rate Bank Debt: $1,471 million ($939 million hedged to fixed rates) Debt Structure • Receivables Securitization Facility: $0 outstanding balance • Other Debt (capital leases, local lines of credit): $122 million Maturities • Current maturities: $94 million; No significant maturities until January 2024 • Credit Facility maximum leverage ratio covenant: 5.00x o Net debt to EBITDA as of June 30, 2020: 2.2x Financial Covenants (1) • Credit Facility minimum interest expense coverage ratio: 3.0x o EBITDA to interest expense as of June 30, 2020: 11.7x • Euro Notes do not include financial maintenance covenants • Cash on balance sheet of $476 million • $3,150 million revolving credit facility: $1,941 million available Liquidity • Receivables securitization facility: $0 outstanding balance ($110 million outstanding capacity) • Total Available Liquidity: $2,527 million • YTD 2020 operating cash flow of $913 million (43% higher than prior year); YTD 2020 free cash flow (2) of $836 million Cash Flows (56% higher than prior year) • Reduced CapEx by over $100M (down ~40%) vs. prior guidance; only mission critical programs and Fource CDC progressing; YTD CapEx of $77 million (down 24% year over year) • Reduced inventory replenishment rates across each segment to reflect current demand outlook • Actively monitoring customer receivables COVID‐19 Actions • European vendor financing program and overall payment terms initiative progressing • Tax payment deferral programs resulted in $175‐$185 million Q2 benefit; largely unwinds in the second half of 2020 and remainder in 2021‐2022 • Share repurchase program suspended on March 16, 2020 • All actions yielded benefits to total liquidity in Q2 8 (1) See the definition of Net Debt, interest expense and EBITDA in the credit agreement filed with the SEC for further details (2) Free Cash Flow is a non‐GAAP measure. Refer to Appendix 5 for Free Cash Flow reconciliation

Today’s Agenda LKQ Today LKQ Business Overview LKQ’s Strategy to Drive Shareholder Value Engaged Board with Strong Governance Practices Concluding Remarks 9

Significant Market Opportunity for LKQ in the US and Europe US and Europe Market Opportunity (1,2,3) Automotive Repair Market US: $243 Europe: €198 DIY Do It For Me (DIFM) US: $194 Europe: €188 US: $49 EU: €10 Retail Collision Mechanical Price US: $46 Europe: €30 US: $148 Europe: €158 Parts & Labor Mechanical Parts Labor Collision Parts Labor US: $81 Europe: €120 US: $67 EU: €38 US: $25 Europe: €22 US: $21 EU: €8 Collision Mechanical Markup Markup (Wholesale) (Wholesale) US: $8 EU: €8 US: $27 EU: €42 US: $17 EU: €14 US: $54 EU: €78 US Market Opportunity – $71 billion Europe Market Opportunity – €102 billion 1) Source: 2014 Datamonitor; Management estimates. 2) Source: AAIA Factbook, 27th Edition 2018; 2016 data is estimated, excludes tires. 3) Note: All $ and € in billions; Excludes VAT and sales taxes. 10